How to Lower Your NelNet Student Loan Payment

Julissa Treviño Updated: April 30, 2019


If you're having trouble making your monthly student loan payments, relief is possible. If your loan servicer is NelNet, one of the companies contracted by the federal government to handle student loan payments, there are three specific ways to lower your payments, including:

  • Enroll in an income-driven repayment plan
  • Consolidate your loans via NelNet
  • Refinance through a private lender

Let's explore the options... 

1. Enroll in an income-driven repayment plan

One way you can lower your payments through NelNet is by enrolling in an income-driven repayment planThere are four such plans, and each one adjusts your monthly payment based on your income (between 10% and 20% of your discretionary income) while increasing your loan term to 20 or 25 years.

This makes your payments more manageable when you're not earning a high salary. As a bonus, after your loan term ends, any remaining loan balance will be forgiven — although you will have to pay taxes on the forgiven amount. 

To enroll, you can visit or apply through the Federal Student Aid website

2. Consolidate your loans via NelNet 

Another option is to consolidate multiple federal loans through a Direct Consolidation Loan. When you do this, you'll merge multiple eligible loans into a single, easy, payment. 

Direct Consolidation Loans are also eligible for income-driven repayment plans and loan forgiveness after 20 or 25 years.

However, be aware that if you extend the term of your loans to get a lower monthly payment, you'll likely pay more interest over time. Another thing to note is that your consolidated interest rate (the average rate of all your individual federal loans) may be slightly higher than some of the original loans. It's calculated by taking the weighted average interest rates of all of your loans, and rounding up one-eighth percent. 

You should also be aware that if you consolidate your loans, you'll reset the clock for Public Service Loan Forgiveness, if that's a program you're eligible for. 

Because Direct Consolidation Loans are offered by the U.S. Department of Education, your loan will continue to be serviced your through NelNet. You can learn more about consolidation at and apply at
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3. Refinance through a private lender

Another way to lower your monthly student loan payments is to refinance through a private lender. Refinancing can score you a lower interest rate and lower your monthly payment.

You can refinance both federal and private loans with a private lender. However, bear in mind that if you refinance federal loans, you'll lose access to perks such as income-driven repayment and Public Service Loan Forgiveness.

Here's how it can work for you: Let's say you currently pay $500 a month on a $50,000 loan. If you have a good credit score and refinance at a 5.69% fixed interest rate, you can lower your monthly payment to $349 a month

Comet Student Loan Refinance Calculator

Check our Student Loan Refinancing Calculator to find out how much you could save. 

Whichever path you end up taking, the first step is reaching out to NelNet. If your account is past due or you can't make make an upcoming payment, don't be afraid to call them. As your service provider, they're here to help. Learn more about the role of a service provider on the blog.

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